THE IMPACT OF DEFERRED TAXES ON PROFIT MANAGEMENT IN THE CONTEXT OF ACCOUNTING AND TAX RULES DEPENDENCY

Abstract

This article presents the concept of independence of accounting and tax rules and shows that it is appropriate to classify the degree of independence of accounting and tax rules into independence, typically independency, dependency with wanted dissolution and dependency groups. Deferred tax is calculated and recognised in the accounts according to these identified groups. Analysis of previous research has shown that deferred taxes influence profit management decisions. In order to assess the impact of deferred taxes on profit management in the context of the independence of accounting and tax rules, an assessment model is presented that would allow to assess the differences between countries with independence and dependence between accounting and tax rules. The research used methods of scientific literature analysis, systematisation, synthesis and interpretation.